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Sev
07-17-2012, 05:30 PM
Dont they know.
We need more stimulus!!!!

Hope & Change!!!


http://www.marketwatch.com/story/qe3...dist=countdown
<span style="color: #000000"><span style='font-size: 23pt'>QE3 is pointless as we head over the cliff</span>
<span style='font-size: 17pt'>Commentary: Fed’s powerless about Europe or U.S. fiscal crisis
</span>
WASHINGTON (MarketWatch) — The U.S. economy faces two major risks, and there’s nothing Ben Bernanke or the Federal Reserve can do about it.

That’s the message Bernanke himself delivered to the Senate Banking Committee on Tuesday. The message wasn’t received by either politicians or markets. Read our full news coverage of Bernanke’s testimony. http://www.marketwatch.com/story/job...ays-2012-07-17

In his twice-a-year official testimony on the state of the economy, Bernanke repeated the warning he’s delivered many times before: The economy is weak, threatened with a renewed recession because policy makers here and in Europe are hell-bent on disaster. Keep track of the latest on Bernanke on our live blog of his testimony. http://www.marketwatch.com/story/qe3...dist=countdown

The banking and fiscal crisis in Europe is creating huge headwinds for the U.S. economy. Global trade is slowing because of Europe, and America is not isolated from that global slowdown. Europe’s problems will be solved, or not, regardless of what we in the United States do. It’s out of our hands.

The second risk to the economy, however, could be solved easily. It’s the fiscal cliff that looms up ahead on Jan. 1, when current law mandates that almost everyone’s marginal tax rate will rise. At the same time, automatic spending cuts will begin to take effect.

The impact of these tax hikes and spending cuts would undoubtedly be another recession, with another million or two people losing their jobs. That’s a recession that the Fed can’t stop, or even cushion, with quantitative easing, or QE3.

“The most effective way that the Congress could help to support the economy right now would be to work to address the nation’s fiscal challenges in a way that takes into account both the need for long-run sustainability and the fragility of the recovery,” Bernanke said, for what seems like the thousandth time. “Doing so earlier rather than later would help reduce uncertainty and boost household and business confidence.”

Of course, Congress will not veer away from the fiscal cliff until the last moment, because each political party wants the other one to be the first to blink. Just Monday, Sen. Patty Murray, a top Democrat from Washington state, said bluntly that the Democrats do not intend to blink first; they’ll drive us off the cliff if necessary to get their way on raising taxes on the rich.

The Republicans have been equally adamant that they’ll drive us off the cliff if they don’t get their way on cutting taxes for the rich. Because neither side will blink, no one expects Congress to act to avert a disaster until after the November elections, if then.

Reuters
U.S. Federal Reserve Chairman Ben Bernanke prepares to testify Tuesday.

In the meantime, the fear of what might happen next year may already be having an impact on businesses’ investment decisions. It’s certainly not helping reassure anyone.

Also in the meantime, the markets are consumed with the tantalizing prospect of another round of quantitative easing, or QE3. Investors are sure that QE3 would goose the markets with more cheap money, but they got no guarantees from Bernanke that QE3 is coming.

All the speculation about QE3 just distracts us from the choices that must be made.</span>

Soflasnapper
07-17-2012, 06:51 PM
QE3 is painless...

It brings on, many changes...

And I can take or leave it, as I please! (Theme from M.A.S.H.)

LWW
07-18-2012, 02:30 AM
Yet this is exactly what thebleft has demanded.

Soflasnapper
07-18-2012, 09:43 AM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: LWW</div><div class="ubbcode-body">Yet this is exactly what thebleft has demanded. </div></div>

It's actually related to the law that the Fed must obey.

It's called the Humphrey-Hawkins Full Employment Act, which see.

They are required under law to perform among other things two tasks: maintain the stability of the dollar (fail), and create the economic conditions for... wait for it... FULL EMPLOYMENT (i.e., a U-3 rate of somewhere in the 4%s).

To that end, the Fed Chairman is required to give twice a year testimony to the Congress as to how that whole charge is proceeding, in the Humphrey-Hawkins prescribed testimony.

Since they are required to do something, and have no flexibility on interest rates because we are and have been at the zero interest rate bound, something like QE3 is required of them.

If not that (whatever it is, as the mechanism they'd use isn't all that clear), then what? They are not allowed under law to do nothing.

Why would you advocate they violate the law?

LWW
07-18-2012, 11:00 AM
That was comedy gold.

Soflasnapper
07-18-2012, 12:55 PM
It would be even more hilarious if you admitted that to you, Humphrey-Hawkins seemed to have something to do with Sadie Hawkins day, probably a cherished memory for you. LOL!

Sev
07-20-2012, 07:33 PM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Soflasnapper</div><div class="ubbcode-body">QE3 is painless...

It brings on, many changes...

And I can take or leave it, as I please! (Theme from M.A.S.H.) </div></div>

Suicide is Easy Here.

Soflasnapper
07-21-2012, 08:56 AM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: LWW</div><div class="ubbcode-body">That was comedy gold. </div></div>

It is funny in a sick way to see the Fed utterly fail to try to perform on their mandate for fuller up to full employment.

That it is their mandate is shown here, at the Chicago Fed page. (http://www.chicagofed.org/webpages/publications/speeches/our_dual_mandate.cfm) :

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">The Federal Reserve's Dual Mandate

What Is the Dual Mandate?

In 1977, Congress amended The Federal Reserve Act, stating the monetary policy objectives of the Federal Reserve as:

"The Board of Governors of the Federal Reserve System and the Federal Open Market Committee shall maintain long run growth of the monetary and credit aggregates commensurate with the economy's long run potential to increase production, <span style='font-size: 14pt'>so as to promote effectively the goals of maximum employment, stable prices and moderate long-term interest rates."</span>

This is often called the "dual mandate" and guides(external) the Fed's decision-making in conducting monetary policy. On January 25, 2012, the Federal Open Market Committee (FOMC) released the principles(external) regarding its longer-run goals and monetary policy strategy. Read more...

What Are the Dual Mandate Projections?

Inflation and Unemployment</div></div>

So yes, not only are they theoretically supposed to be doing what it takes to maximize employment (while balancing that priority with having not too much inflation price instability), it is a law that they are required to do that.

It's also funny that you never hear about this mandate under the law to the Fed, and instead, we have people like Rick Perry saying they have no business doing what the law says they should, and perhaps should be treated real ugly if they try.

Why would you suppose the liberal media, and the oh so leftist Democrats, just can't seem to ever mention, let alone drum into the minds of the public, that the Fed is supposed to be fixing unemployment, and more, creating the conditions for full, maximum employment? And instead, when the Fed takes steps along that line, it is viewed as suspicious and wrong, instead of the performance of their mandate under law?

Could it be that the system's owners require all their vassal politicians, even 'on the left,' to help them ensure low wages, which is helped along by high unemployment? And require their vassal medias to not report on these facts?